Curreen Capital Partners, LP on Fortrea Holdings
Thesis
Fortrea is a contract research business that helps biotechnology and pharmaceutical customers design and execute clinical trials. The company was spun out of Labcorp in 2023 and is attempting to turn around its operations. Curreen views the depressed valuation as offering a particularly favorable upside-to-downside profile. The opportunity fits the fund's preference for spinoffs where temporary operational problems obscure the value of an understandable underlying business.
“Fortrea currently trades at a very attractive upside-to-downside ratio.”
Key risks
- The company's turnaround may take longer than expected or fail.